[Originally posted in 2017] To understand the China ‘One-Belt / ‘One-World‘ economic trade strategy it becomes necessary to understand how structurally weak the Chinese economy was when created.
People often talk about the ‘strength’ of China’s economic model; and indeed within a specific part of their economy -manufacturing- they do have economic strength.
However, the underlying critical architecture of the Chinese economic model is structurally flawed and President Trump with his current economic team understand the weakness better than all international adversaries.
Lets take a stroll and lightly discuss.
China is a central planning economy. Meaning it never was an outcropping of natural economic conditions. China was/is controlled as a communist style central-planning government; As such, it is important to reference the basic structural reality that China’s economy was created from the top down.
This construct of government creation is a key big picture distinction that sets the backdrop to understand how weak the economy really is.
(more…)

Steve Bannon appears on CNBC to discuss the economic objectives of China and how President Trump and USTR Lighthizer are confronting three very important convergences.
Bannon does a good job outlining the three Chinese priorities: ¹One-belt, one road; ²Made in China 2025; and ³Huawei 5G rollout; and how those efforts conflict with U.S. interests.

(more…)

White House economic advisor Larry Kudlow made some news yesterday when he said he would like to see the Fed cut interest rates by half a point (.50%).  Director Kudlow then appeared on CNBC for a discussion of the economy and the United States’ ongoing trade discussions with China and Mexico.
The larger story is actually about the current state of the U.S. economy as Trump’s policies influence direct investment and re-establish a middle-class durable goods manufacturing sector. WATCH:

.
In essence we are in that economic space where Trump has de-emphasized the Wall Street economy (multinational corps, investments and financials) and re-emphasized the Main Street economy (manufacturing, blue collar jobs).  The new trade deals represent an unusual economic paradox for Wall St.  National corporations thrive; however multinational corporations and their investment instruments can simultaneously suffer.
We can tell we are in the space between both of these economies, because actions by the Fed are having no impact on inflation.  Consumer prices are returning back to their natural dynamic.  I’m reposting an article below from December 2016, right after the 2016 election, because this odd economic landscape -while new- was entirely predictable.  I called it the “Third Dimension in American Economics“.
(more…)

President Trump holds a mini press conference with Small Business Administration head Linda McMahon to announce her departure.  During the presser President Trump also answers questions on a variety of current events. [Video and Transcript Below]

.
[Transcript] Mar-a-Lago – Palm Beach, Florida, – 4:17 P.M. EDT
THE PRESIDENT: Well, thank you very much. Linda McMahon has done an incredible job as the head of the Small Business Administration. She has been a superstar. The fact is that I’ve known her for a long time. I knew she was good, but I didn’t know she was that good. She has been one of our all-time favorites. It was just so smooth. She’s helped so many people in the world of small business.
(more…)

President Trump tweeted earlier today that he plans to close at least a portion of the U.S-Mexico border next week in an effort to force Mexico to take action and stop the constant caravans of migrants.  Because the economic consequences to border closing will be so severe (cross-border trade) it is prudent to provide advanced notice so everyone can prepare:

Something has to change. Doing the same thing repeatedly and not changing the outcome is not a sustainable policy.  There is a major ongoing crisis at the border.

(Via NBC) […] Trump has threatened to close the border before. In December, amid the partial government shutdown, Trump threatened to close the border if Democrats didn’t agree to fund the construction of his border wall.

(more…)

Today on the Senate floor, United States Senator Mike Lee received his first star for conspicuous pageantry, meritorious valor, and ridicule with specific consequence during the great meme battle of 2019 against the Green New Deal. WATCH:

(more…)

Earlier today House Judiciary Committee ranking member Doug Collins, released the 239-page transcript (full pdf below) from testimony delivered by George Papadopoulos.  This latest transcript release happens on the same day that Papadopoulos released his book, “Deep State Target.”
George Papadopoulos is the low-level Trump campaign advisor targeted by the CIA and FBI in early 2016.  Papadopoulos was the excuse behind the FBI conducting Operation Crossfire Hurricane that began on July 31st, 2016.

It is widely suspected, almost certain, that CIA Director John Brennan enlisted the help of U.S. and foreign intelligence assets to run operations against the Trump campaign. The objective was to give the false and manufactured appearance of compromise.  Once the CIA established the possibility of compromise that opened the door for FBI investigation.
It’s likely the operation run by Brennan targeting Papadopoulos is at the center of the two-page “EC” (electronic communication); an origination document given to FBI Director James Comey to start the counterintelligence operation (Crossfire Hurricane) against the Trump campaign.  Two of the intelligence assets Brennan organized were Joseph Misfud and Stefan Halper.
Despite his position as a central target of the FBI investigation, Papadopoulos was never questioned until January 2017; highlighting the point he was indeed simply a manufactured tool to assist the larger scheme in monitoring candidate Trump.  George Papadopoulos was never charged with any illicit criminal or spying activity.
(more…)

Find another winnamin. This MAGAnomic win is quiet, but bigly.
The United States Court of International Trade (full pdf below) has rebuked a global industry challenge to President Trump’s Steel and Aluminum tariffs.
The court told the multinational trade association they lacked any authority to override the sovereign authority of President Trump, and his absolute right to apply a national security (section 232) declaration to protect the U.S. Steel and Aluminum industry.  Whoops…

(WASHINGTON DC) The Court of International Trade, the body that hears constitutional challenges to federal trade policy, rejected an effort to overturn President Trump’s 25 percent tariffs on steel imports on Monday.
The American Institute for International Steel, a trade association, had sued the administration, arguing that the president exceeded his authority when he claimed last year that the tariff was justified under Section 232 of the Trade Expansion Act, which involves protecting “national security.” The court said Monday that it lacked the authority to second-guess the president’s decision.

(more…)

Something slightly delayed next week’s schedule by a few days.  Quite possibly the issue with the “Sanctions”, discussed yesterday.  However, that said, the next two face-to-face discussions between USTR Lighthizer and Vice Premier Liu He have been scheduled.

Statement from the Press Secretary – At the direction of President Donald J. Trump, United States Trade Representative Robert Lighthizer and Secretary of the Treasury Steven Mnuchin will travel to Beijing, China, for principal-level meetings starting on March 28, 2019, to continue negotiations aimed at improving the trade relationship between the United States and China.

(more…)

Earlier today President Donald J. Trump and First Lady Melania Trump welcomed the leaders of the Commonwealth of The Bahamas, the Dominican Republic, the Republic of Haiti, Jamaica, and Saint Lucia to their Mar-a-Lago home.  The intent of the meeting was to reaffirm the U.S. strong friendship with and commitment to these countries, and signal the importance of the Caribbean to the hemisphere.

[Transcript] – Mar-a-Lago – Palm Beach, Florida – 2:23 P.M. EDT
PRESIDENT TRUMP: Thank you very much. We’re honored to be with some terrific people that have been friends of mine — in many cases, friends of mine. They’ve done a wonderful job in their respective countries.
(more…)